UPPER MIDWEST DAIRY NEWS

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Federal Milk Market Administrator U.S. Department of Agriculture UPPER MIDWEST DAIRY NEWS H. Paul Kyburz, Market Administrator Volume 8, Issue 10 Upper Midwest Marketing Area, Federal Order No.

.. 4 Utilization and Classification... 5 Commodity Prices and Market Statistics.

1 Federal Milk Market Administrator U.S. Department of Agriculture UPPER MIDWEST DAIRY NEWS H. Paul Kyburz, Market Administrator Volume 8, Issue 10 Upper Midwest Marketing Area, Federal Order No. 30 October 2007 Chuck Connor, Acting Secretary of Agriculture Inside This Issue: Members Named to the National Dairy Board... 2 Computation of Producer Price Differential... 4 Utilization and Classification... 5 Commodity Prices and Market Statistics... 6 Chuck Connor Named Acting Secretary of Agriculture Following Secretary Johanns Resignation President Bush has announced that current Deputy Secretary of Agriculture Chuck Connor will serve as Acting Secretary of Agriculture, following the September 20 resignation of Secretary of Agriculture Mike Johanns. Charles F. Connor was sworn in as Deputy Secretary of Agriculture on May 2, Since coming to the department, Mr. Connor has worked tirelessly to develop and promote the Administration s farm policy. Along with former Secretary of Agriculture Mike Johanns, Mr. Connor led farm bill listening sessions around the country, hearing first-hand from farmers and other stakeholders about their likes and dislikes with the current farm bill. He also led the Department s review of over 4,000 comments which were used to develop a sound policy direction for the future of American agriculture. Mr. Connor continues to lead the Administration s efforts for farm policy reform. Prior to his tenure at the U.S. Department of Agriculture, Mr. Connor served on the National Economic Council beginning in November 2001 as a Special Assistant to the President for Agricultural Trade and Food Assistance, focusing primarily on Farm Bill issues. From 1997 to 2001, Mr. Connor was President of the Corn Refiners Association, Inc., a national trade association representing the corn refining industry. Prior to his tenure with the Corn Refiners Association, Connor held several staff positions with the Senate Committee on Agriculture, Nutrition, and Forestry. Prior to that, Mr. Connor worked as an Agricultural Legislative Assistant to Senator Richard G. Lugar. Mr. Connor received a Bachelor of Science degree in Agricultural Economics from Purdue University in He is married and has four children. In September, 16,695 producers delivered to the market with an average daily delivery of 4,713 pounds. Producer milk totaled 2.3 billion pounds, down 99 million pounds from August, but 315 million pounds above September Class I utilization totaled 370 million pounds, down 1.8% on a daily basis Pool Summary from August. Class I usage accounted for 16.4% of producer milk. The September Producer Price Differential (PPD) is $0.64 per cwt. The Statistical Uniform Price is $20.71 per cwt., up $0.10 from August and $8.34 above September Market statistics for September are shown on Pages 4 and 5. September 2007 Producer Milk by Class Product Percent Pounds Price $/cwt. Class I ,037, Class II ,070, Class III ,800,018, Class IV ,604, Total 2,252,731,069

2 Page 2 UPPER MIDWEST DAIRY NEWS Volume 8, Issue 10 Members Named to National Dairy Board The U.S. Department of Agriculture has announced the appointment of seven new members and reappointment of five incumbents to the National Dairy Promotion and Research Board. All will serve three-year terms ending October 31, The list below shows the 36 members of the national board effective November 1, A map showing the 13 regions is shown on Page 3. The National Dairy Promotion and Research Board, established by the Dairy Production Stabilization Act of 1983, administers a coordinated program of promotion, research and nutrition education. The board's activities are financed by a mandatory 15 per cwt. assessment on milk produced in the contiguous 48 states and marketed commercially by dairy farmers. USDA's Agricultural Marketing Service monitors the activities of the board. REGION 1 (Oregon & Washington) Elizabeth I. Anderson Onalaska, Washington James L. Zielinski * St. Paul, Oregon REGION 2 (California) James L. Ahlem * Hilmar, California Mary E. Cameron Hanford, California Kimberly K. Clauss Hilmar, California Ronald L. Koetsier Visalia, California Stephen D. Maddox * Riverdale, California Brad J. Scott * Moreno Valley, California Pauline Tjaarda * Shafter, California REGION 3 (Arizona, Colorado, Idaho, Montana, Nevada, Utah, & Wyoming) Grant B. Kohler ** Midway, Utah Lester E. Hardesty Windsor, Colorado 2 nd Term Expires 10/31/08 William C. Stouder Wendell, Idaho REGION 4 (Arkansas, Kansas, New Mexico, Oklahoma, & Texas) William R. Anglin Bentonville, Arkansas Jose L. Gonzalez ** Mesquite, New Mexico Lawrence A. Hancock Muleshoe, Texas REGION 5 (Minnesota, North Dakota, & South Dakota) Paul L. Kent Mora, Minnesota Donna L. Sharp Bath, South Dakota REGION 6 (Wisconsin) William J. Herr * Greenwood, Wisconsin Peter J. Kappelman Manitowoc, Wisconsin Bradford A. McCauley Viola, Wisconsin Randy G. Roecker Loganville, Wisconsin Carl F. VanDen Avond Green Bay, Wisconsin REGION 7 (Illinois, Iowa, Missouri, & Nebraska) Douglas D. Nuttelman Stromsburg, Nebraska Larry G. Purdom Cassville, Missouri REGION 8 (Alabama, Kentucky, Louisiana, Mississippi, & Tennessee) Michael M. Ferguson Senatobia, Mississippi 2 nd Term Expires 10/31/08 REGION 9 (Indiana, Michigan, Ohio, & West Virginia) Paul L. Broering ** Saint Henry, Ohio Donald E. Gurtner Fremont, Indiana Carl A. Schmitz Wadesville, Indiana REGION 10 (Florida, Georgia, North Carolina, South Carolina, & Virginia) John M. Larson ** Okeechobee, Florida

3 Volume 8, Issue 10 UPPER MIDWEST DAIRY NEWS Page 3 REGION 11 (Delaware, Maryland, New Jersey, & Pennsylvania) Joyce A. Bupp Seven Valleys, Pennsylvania Rita P. Kennedy Butler, Pennsylvania Paula A. Meabon ** Wattsburg, Pennsylvania REGION 12 (New York) Corrine M. Banker * Morrisville, New York Ronald R. McCormick Java Center, New York Sanford Stauffer Nicholville, New York REGION 13 (Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, & Vermont) Debora A. Erb Landaff, New Hampshire * Recently appointed. ** Recently reappointed. Regions of the National Dairy Board Region 13 Region 1 Region 5 Region 6 Region 12 Region 3 Region 7 Region 9 Region 11 Region 2 Region 10 Region 4 Region 8 Upper Midwest Pool Statistics - September 2007 Market Class I Diverted to Location Differential Pool Received at Pool and Adjustment to Class I Differential Rate Plants Pool Plants Nonpool Plants Total Producers to Handlers Cwt. Number Pounds Pounds Pounds Value Pounds Value $ ,442,134 17,425,265 88,867,399 $ 0 68,509,917 $ 1,233,179 $ ,622, ,199, ,821, , ,081,466 2,608,926 $ ,035, ,584,206 1,115,619,514 1,115, ,062,890 2,262,069 $ ,332,301 51,089,892 76,422, ,633 19,383, ,831 Total ,432,301 1,808,298,768 2,252,731,069 $ 1,716, ,037,942 $ 6,424,004

Page 4 UPPER MIDWEST DAIRY NEWS Volume 8, Issue 10 Computation of Producer Price Differential-September 2007 Utilization Product Component Percentage Pounds Pounds Rate Value Class I Differential

4 Page 4 UPPER MIDWEST DAIRY NEWS Volume 8, Issue 10 Computation of Producer Price Differential-September 2007 Utilization Product Component Percentage Pounds Pounds Rate Value Class I Differential Value $ 6,424, Product 16.4% 370,037,942 Skim Milk 364,643,670 $ ,114, Butterfat 5,394, ,836, Class II Product 2.5% 56,070,553 Nonfat Solids 4,441, ,617, Butterfat 6,930, ,514, Class III Product 79.9% 1,800,018,535 Protein 54,438, ,141, Other Solids 103,184, ,820, Butterfat 65,154, ,389, Class IV Product 1.2% 26,604,039 Nonfat Solids 1,970, ,704, Butterfat 4,797, ,244, SCC Adjustment (Class II, III, and IV) 827, Total Producer Milk 2,252,731,069 $ 474,634, Add: Overage 38, Inventory Reclassified (56,209.57) Other Source Milk.60(h) 0.00 Other Source Milk.60(i) 0.00 Subtract: Transportation Credit 144, Assembly Credit 284, Credit for Reconstituted FMP 0.00 Producer Milk Protein 298,892, Producer Milk Other Solids 37,278, Producer Milk Butterfat 124,246, Producer Milk SCC Adjustment 991, Total Milk and Value 2,252,731,069 $ 12,778, Add: Location Adjustment -- Producer and Unregulated Supply Plant Milk 1,716, One-Half Unobligated Balance Producer Settlement Fund 998, Total Value $ 15,493, Subtract: Producer Settlement Fund Reserve ,075, Producer Price Differential ** $0.64 $ 14,417, * An estimated 181 million pounds of milk was not pooled. ** Producer Price Differential is dollars per cwt. at the Base Zone of Cook County, Illinois.

5 Volume 8, Issue 10 UPPER MIDWEST DAIRY NEWS Page 5 Utilization and Classification of Milk September 2007 August 2007 September 2006 Product Butterfat Product Product Pounds Pounds Pounds Pounds Class I Utilization: Packaged Disposition Milk 48,486,363 1,547,217 54,211,441 55,424,671 Flavored Milk 4,086, ,631 4,544,084 4,803,202 Reduced Fat Milk 136,946,439 2,582, ,779, ,668,946 Lowfat Milk 49,349, ,711 50,532,561 49,679,432 Fat Free Milk 86,646,211 91,713 91,584,015 92,051,417 Flavored Reduced and Fat Free Milk 31,496, ,826 19,502,464 32,746,567 Buttermilk 2,174,825 22,898 2,514,563 2,339,575 Total Packaged Disposition 359,186,296 5,085, ,668, ,713,810 Total Ending Inventory 30,963, ,352 32,690,351 29,909,901 Bulk to Nonpool Plants 13,569, ,507 15,570,584 11,490,890 Shrinkage 2,170, ,611 2,601,970 1,937,624 Total Class I Utilization 405,889,929 5,937, ,531, ,052,225 Other Order Plants (3,080,109) (57,169) (2,352,799) (3,757,575) Beginning Inventory (32,690,351) (482,322) (27,389,454) (31,043,451) Reused Products Other Source Milk (210,261) (3,317) Overage Interhandler Adjustment 128, , ,180 Class I Producer Milk 370,037,942 5,394, ,558, ,540,379 Class II Utilization: Total Class II Utilization 63,732,217 7,421,485 82,868, ,721,126 Other Order Plants (2,472,260) (55,527) (1,788,975) -- Beginning Inventory (280,253) (123,386) (2,698,881) (646,211) Reused Products (4,653,527) (56,397) (4,606,280) (9,140,499) Other Source Milk (255,624) (255,624) (1,397,058) (103,525) Overage Class II Producer Milk 56,070,553 6,930,551 72,376, ,830,891 Class III Utilization: Total Class III Utilization 1,825,853,762 65,458,832 1,896,650,510 1,378,220,368 Other Order Plants (8,753,005) (163,751) (6,475,210) (992,071) Beginning Inventory (2,950,544) (24,662) (6,906,209) (1,065,290) Reused Products Other Source Milk (14,082,472) (107,675) (6,049,534) (6,442,117) Overage (49,206) (8,180) (62,387) (67,868) Class III Producer Milk 1,800,018,535 65,154,564 1,877,157,170 1,369,653,022 Class IV Utilization: Total Class IV Utilization 76,144,799 7,503,627 79,602,857 79,245,480 Other Order Plants (8,299,086) (484,994) (2,588,355) (2,476,617) Beginning Inventory (8,117,335) (569,822) (8,959,546) (14,923,868) Reused Products Other Source Milk (33,084,877) (1,643,063) (55,173,083) (20,542,204) Overage (39,462) (8,333) (21,279) (78,868) Class IV Producer Milk 26,604,039 4,797,415 12,860,594 41,223,923 Total Producer Milk -- All Classes 2,252,731,069 82,276,802 2,351,953,320 1,937,248, Restricted Information

6 Page 6 UPPER MIDWEST DAIRY NEWS Volume 8, Issue 10 Commodity Prices Weighted Monthly Average NASS Prices * Weighted Two-Week Average NASS Prices * Cheddar Cheese Nonfat Cheddar Cheese Nonfat Month/Year Blocks Barrels Average Butter Dry Milk Dry Whey Blocks Barrels Average Butter Dry Milk Dry Whey Dollars per Pound Dollars per Pound Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Chicago Mercantile Exchange Butter Cheddar Cheese Nonfat Dry Milk (Low/Medium Heat) Whey Powder Month/Year Grade AA Blocks Barrels Central & East West Central West Dollars per Pound Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Market Statistics Total Est. Average Other Weighted Distributing Supply Coop.9(c) Producer Daily Delivery Class I Butterfat Protein Solids Average Month/Year Plants Plants Handlers Producers Milk Per Producer Utilization Test Test Test SCC Mil. lbs. Pounds Percent Percent Percent Percent (000) Sep ,892 1,937 4, Oct ,019 2,394 4, Nov ,155 2,369 4, Dec ,785 2,277 4, Jan ,703 2,655 4, Feb ,769 1,960 4, Mar ,047 2,010 4, Apr ,615 1,933 4, May ,763 1,873 5, Jun ,122 1,989 4, Jul ,250 2,390 4, Aug ,312 2,352 4, Sep ,695 2,253 4, * NASS = National Agricultural Statistics Service, USDA.

7 Volume 8, Issue 10 UPPER MIDWEST DAIRY NEWS Page 7 Class Prices Class I Price Mover Class I Price at Cook County, IL Class II Price Skim Skim Nonfat Skim Month/Year Butterfat Milk 3.50% Butterfat Milk 3.50% Butterfat Solids Milk 3.50% lb. cwt. cwt. lb. cwt. cwt. lb. lb. cwt. cwt. Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Class III Price Class IV Price Other Skim Nonfat Skim Month/Year Butterfat Protein Solids Milk 3.50% Butterfat Solids Milk 3.50% lb. lb. lb. cwt. cwt. lb. lb. cwt. cwt. Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Producer Prices Producer Statistical SCC Producer Price Uniform Price Other Solids Adjustment Mailbox Price Month/Year Differential (at 3.50%) Butterfat Price Protein Price Price Rate (at test) $ per cwt. $ per cwt. $ per lb. $ per lb. $ per lb. $ per cwt. $ per cwt. Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun (0.05) Jul Aug Sep

8 Summary of Federal Order Data - September 2007 Uniform or Statistical Uniform Price at 3.5% Butterfat Class I Producer FOB Change From Federal Order Producer Producer Class I Class I Price FOB Cook Cty. Previous Number / Name Deliveries Receipts Utilization Price Differential Market Illinois Year Thousand Pounds Percent Dollars per Cwt. Dollars per Cwt. 1 Northeast 1,907, , $ $ 2.92 $ $ $ Appalachian 458, , n/a Florida 235, , n/a Southeast 558, , n/a Upper Midwest 2,252, , Central 929, , Mideast 1,305, , Pacific Northwest 567, , Southwest 966, , Arizona 282, , n/a All Market Average or Total * 9,464,319 3,617, n/a = Not applicable. * May not add due to rounding. The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities on the basis of race, color, national origin, age, disability, and where applicable, sex, marital status, familial status, parental status, religion, sexual orientation, genetic information, political beliefs, reprisal, or because all or part of an individual's income is derived from any public assistance program. (Not all prohibited bases apply to all programs.) Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact USDA's TARGET Center at (202) (voice and TDD). To file a complaint of discrimination, write to USDA, Director, Office of Civil Rights, 1400 Independence Avenue, S.W., Washington, D.C , or call (800) (voice) or (202) (TDD). USDA is an equal opportunity provider and employer. FEDERAL MILK MARKET ADMINISTRATOR U.S. DEPARTMENT OF AGRICULTURE 4570 W 77th St., Suite 210 Minneapolis, MN Phone: (952) Fax: (952) FIRST-CLASS MAIL U.S. POSTAGE PAID HOPKINS, MN PERMIT NO. 586 Website: Address Service Requested ND MI SD MN WI IA IL Upper Midwest Marketing Area F.O. 30

UPPER MIDWEST DAIRY NEWS

Federal Milk Market Administrator U.S. Department of Agriculture UPPER MIDWEST DAIRY NEWS H. Paul Kyburz, Market Administrator Volume 6, Issue 9 Upper Midwest Marketing Area, Federal Order No. 30 September